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Slight losses for gold, but bulls have the advantage after a solid week

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(Kitco News) - Gold futures prices are trading a bit lower in midday U.S. trading Thursday. Silver is posting slight gains. Both metals have made solid rebounds from their weekly lows, to give the bulls some upside technical momentum. U.S. stock indexes that hit record highs are a bit of restraining element for the safe-haven metals this week, but it can be argued the metals are not faring badly at all given the record-setting stock market rally. February gold futures were last down $1.90 at $1,864.60 and March Comex silver was last up $0.069 at $25.835 an ounce.

Global stock markets were mostly higher overnight. U.S. stock indexes are mixed at midday after hitting new record highs early on. The marketplace is more upbeat following the peaceful transition of U.S. power on Wednesday, with no civil unrest that some had feared would occur. It’s expected President Bident will quickly act with Congress to get his $1.9 trillion stimulus plan rolling, and that markets also like that. It’s also a big corporate earnings week in the stock market, with most of those reports being upbeat. For now, traders and investors have pushed aside the still-raging Covid-19 pandemic in the U.S. and other countries. In the U.S. the death toll has surpassed 400,000, with many more lives likely to be lost in the coming weeks. New strains of Covid are also a worry amid hopes that vaccine distribution will dramatically pick up with the new U.S. administration.

The key “outside markets” today see the U.S. dollar index lower as bulls are fading this week following the recent good rebound from a 2.5-year low scored earlier this month. The main rival to the greenback, the Euro currency, is also in a mild tailspin at present. The weaker dollar and weaker Euro, which usually trade divergently, suggest the “commodity” currencies such as the Australian and Canadian dollars are the better performers. Meantime, Nymex crude oil futures prices are lower and trading around $53.00 a barrel, but still not far below the recent 10-month high. The yield on the benchmark 10-year U.S. Treasury note stands at 1.10%.

Live 24 hours gold chart [Kitco Inc.]

Technically, February gold futures see this week’s price action signaling a near-term market bottom is in place. The gold bulls have the slight overall near-term technical advantage. Bulls’ next upside price objective is to produce a close above solid resistance at $1,900.00. Bears' next near-term downside price objective is pushing futures prices below solid technical support at this week’s low of $1,800.80. First resistance is seen at today’s high of $1,874.60 and then at $1,880.00. First support is seen at $1,850.00 and then at Wednesday’s low of $1,831.10. Wyckoff's Market Rating: 5.5.

Live 24 hours silver chart [ Kitco Inc. ]

March silver futures see this week’s gains signaling a near-term market bottom is in place. The silver bulls have the overall near-term technical advantage. Silver bulls' next upside price objective is closing prices above solid technical resistance at the January high of $29.105 an ounce. The next downside price objective for the bears is closing prices below solid support at this week’s low of $24.04. First resistance is seen at today’s high of $26.13 and then at $26.27. Next support is seen at $25.50 and then at $25.00. Wyckoff's Market Rating: 6.0.

March N.Y. copper closed up 5 points at 364.10 cents today. Prices closed nearer the session low today. The copper bulls have the solid overall near-term technical advantage. Copper bulls' next upside price objective is pushing and closing prices above solid technical resistance at 375.00 cents. The next downside price objective for the bears is closing prices below solid technical support at 345.00 cents. First resistance is seen at 368.40 cents and then at the January high of 373.40 cents. First support is seen at this week’s low of 355.85 cents and then at 352.50 cents. Wyckoff's Market Rating: 7.5.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.